On December 24, gold prices broke through the previous all-time high of $4,380 this week, with the long-standing key resistance level breached, opening up further upside potential. Gold has been "sprinting" like a wild horse, with prices consecutively surpassing the $4,400 and $4,500 milestones. This is not only a technical breakthrough but also a full-scale eruption of long-suppressed bullish sentiment.
Gold continues to set new historical highs, with the bullish momentum unstoppable and seemingly limitless. Tuesday's strategy suggested going long early in the session, but prices opened higher with no pullback—either enter long directly or stay on the sidelines. It is crucial not to short simply because prices seem high, as counter-trend trades for pullbacks are a major trading taboo and serve no meaningful purpose. Even if profitable, such trades only foster bad habits.
As mentioned, gold's bullish momentum has just entered an accelerated phase. Yesterday, chasing highs was viable—every time prices briefly held above $4,400 or $4,500, blindly following the long trend was justified. The market movement aligned with expectations. Today, however, traders should be slightly cautious about the long-entry timing, avoiding reckless chasing of highs and staying alert to potential pre-Christmas sell-offs. Key support lies near yesterday’s low of $4,430, which is also the pre-dawn rally point. Any pullback above this level presents an opportunity to enter long. Currently, the 1-hour pullback low is at $4,470, so going long above $4,470 in the afternoon is advisable, with a stop-loss below $4,468 and targets at $4,500–$4,525. If prices consolidate strongly above $4,500 in the afternoon, aggressively position for long, initially targeting the $4,525 high, and add positions upon breakout for further gains of $20–$30 or more.
